Estimation of Forwarding and Shipping Cost:
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Fig: Shipping and forwarding cost calculation method |
SL No.
|
Parameters
|
Quantity & Cost
|
01
|
Order quantity
|
10000pcs apparel
|
02
|
Total value
|
Rs. 1000000
|
03
|
1 carton box
|
200 apparel
|
04
|
Carton box size
|
60cm× 40cm× 30cm
|
05
|
Freight charge for shoppers
|
$40/m3 (1$= Rs. 45)
|
06
|
Terminal handling charges
|
Rs. 250/m3
|
07
|
Documentation charges
|
Rs. 1000
|
08
|
Transportation
|
Rs. 8000
|
09
|
Port charges
|
Rs. 10000
|
10
|
Custom expenses
|
Rs. 12000
|
11
|
Insurance charges (If any)
|
Rs. 12000
|
12
|
Agent commission
|
0.2% of total value of the order
|
13
|
Service charge
|
Rs. 2000
|
Solution:
The below formula has to apply in apparel shipping and forwarding cost calculation method:
Apparel shipping and forwarding cost per apparel,
Total expenses related with shipping
= ………………………………………………….. ……….. (1)
Shipping quantity
Now,
Total carton box,
= (Order quantity/No. of apparel in each carton)
= (10000/20)
= 50
Again,
Carton box volume,
= (0.6m × 0.4m × 0.3m)
= 0.072m3
So,
Total volume stands at,
= (No. of carton box × Volume of carton box)
= (50 × 0.072)
= 3.6m3
All Shipping Expenses Calculation:
Freight cost,
= (Total volume × freight charge × Rs. 45)
= (3.6 × $40 × Rs. 45)
= Rs. 6480
Again,
Terminal handling charge,
= (Total volume × charge)
= (3.6 × Rs. 250)
= Rs. 900
Again,
Documentation charge – Rs. 1000
Transportation charge – Rs. 8000
Port charges – Rs. 10000
Custom expense – Rs. 12000
Insurance charge – Rs. 12000
Agent commission (0.2% of total value) – Rs. 2000
Service charge – Rs. 2000
So,
Total expense cost stands at,
= Rs. (6480 + 900+1000+8000+10000+12000+12000+2000+2000)
= Rs. 54380
Now,
From the equation-01, we get,
Apparel shipping and forwarding cost per apparel,
= (54380/10000)
= Rs. 5.45